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EUR/USD Sinks as Draghi Promises Interest Rates to Remain Low

August 1, 2013 by Vladimir Vyun

EUR/USD sank today after European Central Bank President Marion Draghi left interest rates unchanged and suggested that they will remain low for a long time. Coupled with some positive data from the United States, the currency pair had no choice but to go down.

Seasonally adjusted initial jobless claims fell from 345k to 326k last week. Analysts did not expect any change. (Event A on the chart.)

ISM manufacturing PMI jumped from 50.9% in June to 55.4% in July. Market participants have expected an increase to 52.1%. (Event B on the chart.)

Construction spending shrank 0.6% in June, while forecasts have promised an increase by 0.4%. The May’s change was revised from 0.5% up to 1.3%. (Event B on the chart.)

EUR/USD for 2013-08-01

If you have any comments on the recent EUR/USD action, please reply using the form below.

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